AJ MEC LIMITED

Executive Summary

AJ MEC LIMITED is a micro private limited company currently active and compliant with filing requirements. Its financial position shows a recent reduction in liquidity and shareholders’ funds, with some ambiguity around provisions and liabilities. While no immediate solvency issues are evident, limited operational scale and declining working capital warrant further investigation to assess sustainability risks.

AJ MEC LIMITED - Analysis Report

Company Number: 12691278

Analysis Date: 2025-07-20 16:16 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net current assets and shareholders’ funds in the latest year, with a sharp reduction in current assets and no current liabilities reported, which is unusual. The presence of provisions and accruals without corresponding creditors raises questions on financial clarity. The micro-entity status limits detailed disclosures, and the company employs no staff, which may impact operational stability.

2. Key Concerns:

• Liquidity decline: Current assets dropped from £83,124 to £36,590 year on year, significantly reducing liquid resources.
• Provisions without creditors: The balance sheet shows £9,046 in provisions and £3,520 in accruals but zero current liabilities, which may indicate deferred obligations or unclear liabilities.
• No employees and limited activity: No employees reported and a minimal fixed asset base (£245) suggest limited operational scale or potential inactivity risks.

3. Positive Indicators:

• No overdue filings: Both accounts and confirmation statements are up to date, showing compliance with regulatory requirements.
• No current liabilities: Absence of short-term creditors may suggest absence of immediate debt pressure.
• Shareholders funds positive: Despite the decline, equity remains positive at £24,269, indicating net asset backing.

4. Due Diligence Notes:

• Clarify the nature and timing of the provisions and accruals, and why current liabilities are zero despite these entries.
• Investigate the reason for the sharp decrease in current assets and the impact on cash flow.
• Understand the business model and revenue generation given no employees and micro classification; verify operational viability.
• Confirm there are no director conduct issues or pending legal matters affecting governance.